AVANTOR INC (AVTR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVTR - US05352A1007 - Common Stock
11.73 USD
-0.01 (-0.09%)
11.73 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AVTR. AVTR was compared to 58 industry peers in the Life Sciences Tools & Services industry. There are concerns on the financial health of AVTR while its profitability can be described as average. AVTR has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
AVTR had positive earnings in the past year.
In the past year AVTR had a positive cash flow from operations.
Each year in the past 5 years AVTR has been profitable.
AVTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVTR has a better Return On Assets (-0.70%) than 62.07% of its industry peers.
AVTR has a better Return On Equity (-1.48%) than 62.07% of its industry peers.
The Return On Invested Capital of AVTR (4.80%) is better than 70.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVTR is significantly below the industry average of 13.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.7% | ||
| ROE | -1.48% | ||
| ROIC | 4.8% |
ROA(3y)4.42%
ROA(5y)3.49%
ROE(3y)10.57%
ROE(5y)9.15%
ROIC(3y)6.58%
ROIC(5y)6.55%
1.3 Margins
AVTR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.18%, AVTR is doing good in the industry, outperforming 67.24% of the companies in the same industry.
AVTR's Operating Margin has improved in the last couple of years.
AVTR has a Gross Margin of 33.13%. This is in the lower half of the industry: AVTR underperforms 65.52% of its industry peers.
In the last couple of years the Gross Margin of AVTR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.18% | ||
| PM (TTM) | N/A | ||
| GM | 33.13% |
OM growth 3Y-7.05%
OM growth 5Y2.19%
PM growth 3Y15.1%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y1.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVTR is destroying value.
Compared to 1 year ago, AVTR has more shares outstanding
Compared to 5 years ago, AVTR has more shares outstanding
The debt/assets ratio for AVTR has been reduced compared to a year ago.
2.2 Solvency
AVTR has an Altman-Z score of 1.79. This is a bad value and indicates that AVTR is not financially healthy and even has some risk of bankruptcy.
AVTR's Altman-Z score of 1.79 is in line compared to the rest of the industry. AVTR outperforms 43.10% of its industry peers.
AVTR has a debt to FCF ratio of 7.37. This is a slightly negative value and a sign of low solvency as AVTR would need 7.37 years to pay back of all of its debts.
AVTR's Debt to FCF ratio of 7.37 is fine compared to the rest of the industry. AVTR outperforms 60.34% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that AVTR is somewhat dependend on debt financing.
AVTR has a Debt to Equity ratio of 0.65. This is in the lower half of the industry: AVTR underperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.37 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.51
WACC9.46%
2.3 Liquidity
A Current Ratio of 1.49 indicates that AVTR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.49, AVTR is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
AVTR has a Quick Ratio of 1.49. This is a bad value and indicates that AVTR is not financially healthy enough and could expect problems in meeting its short term obligations.
AVTR has a worse Quick ratio (0.96) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for AVTR have decreased by -2.04% in the last year.
Measured over the past years, AVTR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.82% on average per year.
AVTR shows a decrease in Revenue. In the last year, the revenue decreased by -3.59%.
Measured over the past years, AVTR shows a small growth in Revenue. The Revenue has been growing by 2.35% on average per year.
EPS 1Y (TTM)-2.04%
EPS 3Y-10.82%
EPS 5YN/A
EPS Q2Q%-15.38%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y-2.8%
Revenue growth 5Y2.35%
Sales Q2Q%-5.28%
3.2 Future
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
Based on estimates for the next years, AVTR will show a small growth in Revenue. The Revenue will grow by 1.67% on average per year.
EPS Next Y-7.13%
EPS Next 2Y-2.78%
EPS Next 3Y2.39%
EPS Next 5Y5.4%
Revenue Next Year-3.96%
Revenue Next 2Y-1.79%
Revenue Next 3Y0.18%
Revenue Next 5Y1.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.22, AVTR is valued correctly.
Based on the Price/Earnings ratio, AVTR is valued cheaply inside the industry as 98.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, AVTR is valued rather cheaply.
The Price/Forward Earnings ratio is 12.41, which indicates a correct valuation of AVTR.
Based on the Price/Forward Earnings ratio, AVTR is valued cheaper than 98.28% of the companies in the same industry.
AVTR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
98.28% of the companies in the same industry are more expensive than AVTR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AVTR is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
AVTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.78%
EPS Next 3Y2.39%
5. Dividend
5.1 Amount
AVTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.73
-0.01 (-0.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners103.37%
Inst Owner Change-5.17%
Ins Owners0.34%
Ins Owner Change6.07%
Market Cap8.00B
Revenue(TTM)6.58B
Net Income(TTM)-82.20M
Analysts71.11
Price Target14 (19.35%)
Short Float %3.34%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.53%
Min EPS beat(2)-5.09%
Max EPS beat(2)-3.97%
EPS beat(4)1
Avg EPS beat(4)-2.12%
Min EPS beat(4)-5.09%
Max EPS beat(4)2.94%
EPS beat(8)5
Avg EPS beat(8)1.74%
EPS beat(12)6
Avg EPS beat(12)0.63%
EPS beat(16)9
Avg EPS beat(16)1.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-3.35%
Max Revenue beat(2)-1.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)-1.44%
Revenue beat(8)0
Avg Revenue beat(8)-2.36%
Revenue beat(12)0
Avg Revenue beat(12)-2.35%
Revenue beat(16)0
Avg Revenue beat(16)-2.39%
PT rev (1m)-0.75%
PT rev (3m)-2%
EPS NQ rev (1m)-14.84%
EPS NQ rev (3m)-15.31%
EPS NY rev (1m)-3.8%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)-3.92%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.22 | ||
| P/FCF | 15.27 | ||
| P/OCF | 12.41 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.48 |
EPS(TTM)0.96
EY8.18%
EPS(NY)0.95
Fwd EY8.06%
FCF(TTM)0.77
FCFY6.55%
OCF(TTM)0.95
OCFY8.06%
SpS9.64
BVpS8.17
TBVpS-3.93
PEG (NY)N/A
PEG (5Y)N/A
Graham Number13.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.7% | ||
| ROE | -1.48% | ||
| ROCE | 5.94% | ||
| ROIC | 4.8% | ||
| ROICexc | 4.92% | ||
| ROICexgc | 29.45% | ||
| OM | 9.18% | ||
| PM (TTM) | N/A | ||
| GM | 33.13% | ||
| FCFM | 7.96% |
ROA(3y)4.42%
ROA(5y)3.49%
ROE(3y)10.57%
ROE(5y)9.15%
ROIC(3y)6.58%
ROIC(5y)6.55%
ROICexc(3y)6.76%
ROICexc(5y)6.74%
ROICexgc(3y)52.77%
ROICexgc(5y)49.06%
ROCE(3y)8.14%
ROCE(5y)8.11%
ROICexgc growth 3Y9.06%
ROICexgc growth 5Y15.03%
ROICexc growth 3Y-3.1%
ROICexc growth 5Y1.59%
OM growth 3Y-7.05%
OM growth 5Y2.19%
PM growth 3Y15.1%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y1.11%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.37 | ||
| Debt/EBITDA | 3.6 | ||
| Cap/Depr | 29.62% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 63.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.79 |
F-Score5
WACC9.46%
ROIC/WACC0.51
Cap/Depr(3y)35.33%
Cap/Depr(5y)30.17%
Cap/Sales(3y)2.02%
Cap/Sales(5y)1.71%
Profit Quality(3y)143.28%
Profit Quality(5y)453.06%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.04%
EPS 3Y-10.82%
EPS 5YN/A
EPS Q2Q%-15.38%
EPS Next Y-7.13%
EPS Next 2Y-2.78%
EPS Next 3Y2.39%
EPS Next 5Y5.4%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y-2.8%
Revenue growth 5Y2.35%
Sales Q2Q%-5.28%
Revenue Next Year-3.96%
Revenue Next 2Y-1.79%
Revenue Next 3Y0.18%
Revenue Next 5Y1.67%
EBIT growth 1Y-4.14%
EBIT growth 3Y-9.65%
EBIT growth 5Y4.59%
EBIT Next Year2.25%
EBIT Next 3Y4.7%
EBIT Next 5Y3.54%
FCF growth 1Y-24.62%
FCF growth 3Y-6.35%
FCF growth 5Y18.01%
OCF growth 1Y-21.8%
OCF growth 3Y-4.11%
OCF growth 5Y18.89%
AVANTOR INC / AVTR FAQ
What is the ChartMill fundamental rating of AVANTOR INC (AVTR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AVTR.
Can you provide the valuation status for AVANTOR INC?
ChartMill assigns a valuation rating of 7 / 10 to AVANTOR INC (AVTR). This can be considered as Undervalued.
How profitable is AVANTOR INC (AVTR) stock?
AVANTOR INC (AVTR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for AVTR stock?
The Price/Earnings (PE) ratio for AVANTOR INC (AVTR) is 12.22 and the Price/Book (PB) ratio is 1.44.
Can you provide the financial health for AVTR stock?
The financial health rating of AVANTOR INC (AVTR) is 2 / 10.